BRITISH ECONOMIES

Manawatu Standard, Volume IV, Issue 222, 20 August 1931, Page 7

BRITISH ECONOMIES

COMMITTEE’S PROPOSALS. FULL CABINET CONSIDERATION. LABOUR PAPER’S SPECULATION. (United Press Association—By Electric Telegraph.—Copyright.) Received August 20, 10.5 a.m. RUGBY, Aug. 19. The Cabinet Economy Committee concluded its work last night, but the nature of the report is being kept secret until after its consideration by the full Cabinet, which has been studying the matter all day and is expected to sit until late into the night. Cabinet will endeavour to reach definite decisions for presentation to the Labour Party and the trades unions to-morrow. GREAT SAVINGS EXPECTED. An earlier message stated: Among the Economy Committee’s proposals to Cabinet for discussion and decision, according to the Daily Herald, will be a general 10 per cent, tariff for revenue purposes, the temporary suspension of the Sinking Fund, a tax on interest-bearing securites; also increased contributions to the Unemployment Insurance Fund, with or without reductions in benefits, but coupled with administrative changes designed to prevent abuses; finally, a voluntary conversion of the war loan.

The newspaper adds that the proposal for a revenue tariff will receive support from Tdinisters who hitherto have been rigid free-traders, and who will urge it as an emergency measure. A 10 per cent tariff on retained manufactures, including imports partly finished, will yield on the basis of the 1931 imports, £20,000,000. It is estimated that a further 10 per cent, on food at present not taxed will yield possibly £25,000,000. The suspension of the Sinking Fund will save £50,000,000, and an increase in unemployment contributions will yield £9,000,000. The securities’ tax yield is problematical. Members of the Cabinet, as an example to the nation, will accept cuts in their own salaries.

The significance of the above lies in its publication in the Government organ.